BAH Calculator — 2026 Rates

What is BAH?

Basic Allowance for Housing (BAH) is a monthly allowance paid to service members who live off-post or off-base in the United States. It is not taxable income — excluded from federal income tax, FICA, and most state income taxes.

BAH is determined by three factors: your pay grade, your duty station's Military Housing Area (MHA), and whether you have dependents. It does not depend on your actual rent — you receive the same published rate whether your actual rent is higher or lower, so housing choices can create a monthly surplus or shortfall.

How BAH rates are set

BAH is designed to cover approximately 95% of average housing costs for your pay grade, with a 5% out-of-pocket cost-sharing element built into the program. Rates are calculated by Military Housing Area, pay grade, and dependency status using local rental and utility data. The Defense Travel Management Office (DTMO) surveys local rental markets each year and updates rates every January 1st based on the prior year's survey data.

Because surveys lag the market by roughly a year, BAH may not perfectly match current rents in rapidly changing markets — but it is always benchmarked against real local data, not a flat national rate.

Rate protection

If BAH rates decrease in a future year, your rate is protected — you keep your current rate as long as your pay grade, duty station, and dependency status stay the same. This is called “rate protection” or “grandfathering.”

Rate protection resets when your dependency status changes (e.g., you gain or lose dependents) or when you PCS to a new duty station. In those cases, you receive the current rate for your new situation.

With vs. without dependents

The “with dependents” rate applies if you have any qualifying dependent — a spouse, child, or other dependent listed in DEERS. You only need one qualifying dependent to receive the higher rate, and you receive it even if your dependent does not live with you (e.g., geographically separated families).

BAH does not increase based on the number of dependents — one dependent and four dependents receive the same rate. The “without dependents” rate applies to single service members and those whose dependents are not enrolled in DEERS.

Edge cases — dual-military couples, child support-only situations, custody arrangements, government quarters, and unaccompanied tours — can change the entitlement. Verify your specific situation with your finance office.

BAH and your taxes

BAH is excluded from gross income for federal income tax, FICA (Social Security and Medicare), and most state income taxes under 26 U.S.C. § 134. It does not appear on your W-2 as taxable wages. State treatment generally follows the federal exclusion, but residency and state-specific rules can vary. Verify with your state tax guidance.

This tax exclusion meaningfully increases the real value of BAH. A service member in the 22% federal bracket receiving $2,500/month in BAH is effectively receiving the equivalent of $3,205/month in taxable civilian compensation.

BAH and PCS moves

When you PCS to a new duty station, your BAH transitions to the rate for your new MHA. Use the Compare mode above to see the difference between your current and gaining stations before you move — this is essential input for your housing budget.

During a PCS move, you may be entitled to BAH at your old station, your new station, or both for a limited period, depending on your situation. Consult your S1/J1 or PSD for your specific transition entitlements.

To estimate your full PCS entitlements — DLA, MALT mileage, per diem, TLE, and PPM/DITY net proceeds — see the PCS Cost Estimator.

To compare total compensation — BAH, state income tax, CONUS COLA, and estimated take-home pay — between two specific duty stations, use the Duty Station Comparison Calculator.